It’s been a wild 24 hours for currency traders and US President Donald Trump’s latest comment – that he wants “to see a strong [US] dollar” – is adding to the volatility.
At 9am AEDT on Australia Day, the dollar was 0.5 per cent lower at US80.26¢; it ranged over the past day from a four-month high of US81.19¢ to a low of US80.12¢.
Volatility spiked across global markets – equities, bonds, commodities as well as currencies – after Mr Trump outright contradicted his Treasury Secretary Steven Mnuchin, and said that Mr Mnuchin’s comments had been “taken out of context”.
Earlier overnight, there had been a wave of criticism about the seemingly new US dollar position staked out by Mr Mnuchin from European Central Bank president Mario Draghi, International Monetary Fund boss Christine Lagarde and hedge fund billionaire Ray Dalio.
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